Break-Even Point Calculator

Find your break-even point with ease using our online calculator. Input your data and get instant results for informed financial decision-making.

Break-Even Point Formula

Calculating your break-even point can seem daunting, but it's a crucial step in managing your business finances. Fortunately, the formula is simple:

Break-Even Point = Fixed Costs ÷ (Price - Variable Costs)

Remember, your fixed costs are the expenses that stay the same no matter how many units you sell. Variable costs, on the other hand, change based on the number of units sold.

Don't let financial jargon intimidate you! Our Break-Even Point Calculator makes it easy to understand your business's financial situation and make informed decisions.

Break-Even Point Example

Let's say you run a small business selling handmade crafts. You sell each item for $50, and it costs you $20 in materials and labor to make each item. You also have fixed costs of $2,000 per month to cover rent, utilities, and other expenses.

To find your break-even point, we'll use the formula:

Break-Even Point = Fixed Costs ÷ (Price - Variable Costs)

Plugging in our numbers, we get:

Break-Even Point = $2,000 ÷ ($50 - $20) = 67 units

This means you need to sell at least 67 units per month to cover your fixed and variable costs and break even. If you sell fewer units, you'll be operating at a loss. If you sell more units, you'll start making a profit.

Using our Break-Even Point Calculator, you can quickly and easily calculate your break-even point and make informed decisions about your business finances.